The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: ok Sales nces Fixed expenses: Variable manufacturing and selling expenses Contribution margin Advertising, traceable Depreciation of special equipment Salaries of product-line managers Total $ 937,000 469,000 468,000 Dirt Bikes $270,000 115,000 155,000 Mountain Bikes $ 400,000 195,000 Racing Bikes $ 259,000 159,000 213,000 100,000 69,500 8,200 41,000 20,300 43,000 20,400 7,400 15,200 113,see Allocated common fixed expenses 40,700 187,400 54,000 Total fixed expenses 413,700 123,300 38,000) 81,600 168,000 35,100 Net operating income (loss) 5:54,100 $31,700 $ 45,000 51,800 122,400 5 (22,400) Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of racing bikes be discontinued? Yes ONO Prepare a properly formatted segmented income statement that would be more useful to management in assessing profitability of the various product lines. Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) Totals Dirt Bikes Mountain Bikes Racing Bikes